The Gargus Company, Which Manufactures Projection Equipment, Is Ready to Introduce

question 4

Multiple Choice

The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: $\begin{array}{lr}\text { Variable manufacturing costs } & \mathrm{S} \\\text { Applied fixed manufacturing overhead } & 135 \\\text { Variable selling and administrative costs } & 90 \\\text { Applied fixed selling and administrative costs } & 105\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 110%?

• A) $445.50.
• B) $850.50.
• C) $660.
• D) $1,260.
• E) None of these answer choices is correct.

---

Definitions:

Emotional Connection

A bond between individuals that is based on shared feelings and emotional understanding.

Adolescent

pertains to the developmental stage of human growth between childhood and adulthood, characterized by physical, psychological, and social changes.

Young Adult

denotes an individual in the transitional phase of life between adolescence and full-fledged adulthood, typically aged between 18 to 25.